Ann Arbor, Michigan-based Domino's Pizza, Inc. (DPZ) is the world’s largest pizza company by retail sales, known for its strong delivery and carryout business model. With a market cap of $16 billion, Domino’s operates through a mix of company-owned and franchise locations.
Shares of DPZ have underperformed the broader market over the past 52 weeks. DPZ has risen 5.1% over this time frame, while the broader S&P 500 Index ($SPX) has gained 17.6%. But, in 2025, shares of DPZ are up 8.6%, compared to SPX’s 1.7% increase on a YTD basis.
Narrowing the focus, DPZ has also lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 20% rise over the past 52 weeks. However, XLY has dipped 3% on a YTD basis, lagging behind DPZ’s rise in 2025.
On Feb. 24, DPZ shares dropped 1.5% after it announced its Q4 earnings release. Its earnings missed analyst expectations but maintained a steady growth trajectory. EPS rose 9.2% to $4.89, just below the $4.90 estimate, while revenue increased 2.9% to $1.44 billion, falling short of the expected $1.48 billion. U.S. same-store sales grew 3.2%, and international same-store sales rose 1.6%, marking the 31st consecutive year of growth in its global business.
For the year that ended in December, analysts expect DPZ’s EPS to grow 14.1% year-over-year to $16.72. The company’s earnings surprise history is solid. It beat the consensus estimates in the last four quarters.
Among the 29 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 17 “Strong Buy” ratings, two “Moderate Buys,” nine “Holds,” and one “Strong Sell.”
This configuration has been fairly consistent over the past couple of months.
On Feb. 25, TD Cowen analyst Andrew M. Charles reaffirmed a “Buy” rating on Domino’s Pizza with a $490 price target, suggesting a 14% upside. Despite forecasting under 3% U.S. comparable sales growth in early 2025, Charles remains optimistic, citing strong financial health and the extended Uber Eats partnership. Charles also expects a 2.5% sales boost from DoorDash integration, reinforcing confidence in Domino’s strategic direction.
DPZ’s mean price target of $489.53 represents a premium of 7.4% from prevailing market prices. The Street-high price target of $559 implies a potential upside of 22.7%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
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